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Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 90 90 80 80 PRICE (Dollars per razor) 30 30 40 40 50 660 70 70 220 20 10 MC ATC MR Demand 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of razors) Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that the efficient scale. firm. Further, the quantity the firm produces in long-run equilibrium is True or False: This indicates that there is a markup on marginal cost in the market for razors. True False at the optimal quantity for each Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of externality implies that there is too much entry of new firms in the market. the

Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 90 90 80 80 PRICE (Dollars per razor) 30 30 40 40 50 660 70 70 220 20 10 MC ATC MR Demand 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of razors) Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that the efficient scale. firm. Further, the quantity the firm produces in long-run equilibrium is True or False: This indicates that there is a markup on marginal cost in the market for razors. True False at the optimal quantity for each Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of externality implies that there is too much entry of new firms in the market. the

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 90 90 80 80 PRICE (Dollars per razor) 30 30 40 40 50 660 70 70 220 20 10 MC ATC MR Demand 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of razors) Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that the efficient scale. firm. Further, the quantity the firm produces in long-run equilibrium is True or False: This indicates that there is a markup on marginal cost in the market for razors. True False at the optimal quantity for each Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of externality implies that there is too much entry of new firms in the market. the
Transcribed Image Text:Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 90 90 80 80 PRICE (Dollars per razor) 30 30 40 40 50 660 70 70 220 20 10 MC ATC MR Demand 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of razors) Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that the efficient scale. firm. Further, the quantity the firm produces in long-run equilibrium is True or False: This indicates that there is a markup on marginal cost in the market for razors. True False at the optimal quantity for each Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of externality implies that there is too much entry of new firms in the market. the
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